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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-2.96 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -2.96 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -6.61   Max: 2.82
Current: -2.96

-6.61
2.82

During the past 11 years, the highest Beneish M-Score of Pampa Energia SA was 2.82. The lowest was -6.61. And the median was -2.93.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4085+0.528 * 0.1276+0.404 * 1.0729+0.892 * 1.1774+0.115 * 0.9615
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2493+4.679 * -0.1224-0.327 * 0.882
=-2.96

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $392.1 Mil.
Revenue was 200.88 + 194.274057143 + 189.941714286 + 185.2912 = $770.4 Mil.
Gross Profit was -0.525714285714 + 14.0118857143 + 2.01954285714 + 5.50182857143 = $21.0 Mil.
Total Current Assets was $676.0 Mil.
Total Assets was $2,368.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,265.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $68.7 Mil.
Selling, General & Admin. Expense(SGA) was $194.7 Mil.
Total Current Liabilities was $903.4 Mil.
Long-Term Debt was $457.5 Mil.
Net Income was 6.98285714286 + 103.0792 + 83.1973714286 + 10.9253714286 = $204.2 Mil.
Non Operating Income was -23.2914285714 + 61.9629714286 + 16.5224 + 49.3179428571 = $104.5 Mil.
Cash Flow from Operations was 0 + 90.5225142857 + 73.7980571429 + 225.1688 = $389.5 Mil.
Accounts Receivable was $236.4 Mil.
Revenue was 170.274285714 + 163.589371429 + 157.287314286 + 163.161714286 = $654.3 Mil.
Gross Profit was -0.628571428571 + 12.9084571429 + -7.20422857143 + -2.79965714286 = $2.3 Mil.
Total Current Assets was $486.9 Mil.
Total Assets was $1,639.6 Mil.
Property, Plant and Equipment(Net PPE) was $877.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.7 Mil.
Selling, General & Admin. Expense(SGA) was $132.4 Mil.
Total Current Liabilities was $669.5 Mil.
Long-Term Debt was $398.8 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(392.08 / 770.386971429) / (236.430971429 / 654.312685714)
=0.50893903 / 0.36134248
=1.4085

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(14.0118857143 / 654.312685714) / (-0.525714285714 / 770.386971429)
=0.00347846 / 0.02726882
=0.1276

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (675.954285714 + 1265.55428571) / 2368.11428571) / (1 - (486.860342857 + 877.478057143) / 1639.63142857)
=0.18014575 / 0.16789934
=1.0729

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=770.386971429 / 654.312685714
=1.1774

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(45.6886857143 / (45.6886857143 + 877.478057143)) / (68.6785142857 / (68.6785142857 + 1265.55428571))
=0.04949126 / 0.05147416
=0.9615

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(194.676114286 / 770.386971429) / (132.3512 / 654.312685714)
=0.25269913 / 0.20227516
=1.2493

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((457.462857143 + 903.394285714) / 2368.11428571) / ((398.849485714 + 669.4888) / 1639.63142857)
=0.57465856 / 0.65157222
=0.882

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(204.1848 - 104.511885714 - 389.489371429) / 2368.11428571
=-0.1224

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -2.96 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.49210.75131.06371.24321.05231.54141.1018
GMI 1.0931.0541.21921.50822.3609-1.0086-1.7772
AQI 1.08390.77041.04442.05530.78030.59691.1507
SGI 2.71351.01981.1891.19571.15050.79681.163
DEPI 0.50331.08850.91450.89781.06331.1361.0677
SGAI 0.88341.14781.06071.031.00281.63641.197
LVGI 1.11490.93571.09661.15431.15641.25151.0047
TATA -0.0633-0.0942-0.0594-0.1359-0.1441-0.0662-0.1315
M-score -1.71-3.19-2.45-2.09-2.39-3.87-4.29

Pampa Energia SA Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.77491.27441.14681.53731.69771.6971.38951.10180.92311.4085
GMI 12.8615-6.2017-2.2308-0.9659-0.8434-4.0873-1.8317-1.8008-0.34280.1276
AQI 0.90210.68180.76010.59690.57160.86880.79621.15071.14481.0729
SGI 1.12410.9530.8480.7990.80920.9561.071.1631.20451.1774
DEPI 0.91770.81750.78460.79221.02151.10340.78610.75770.79130.9615
SGAI 1.03141.29981.44331.60151.55361.25641.18231.16131.18061.2493
LVGI 1.14771.15581.2291.25151.28791.18741.14411.00470.86850.882
TATA -0.1636-0.0616-0.0827-0.067-0.0626-0.1312-0.2309-0.1903-0.1567-0.1224
M-score 2.82-6.61-4.85-3.89-3.63-5.32-4.82-4.61-3.76-2.96
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